Case Study(Insurance – Protecting your Family)

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Max, 35, is an accountant earning $60,000 a year. He’s married to Sarah, 34, and they have two children aged four and two. Sarah currently stays at home caring for the children. Max and Sarah have a $140,000 mortgage, $4,000 owing on credit cards, and a car loan of $6,000. Max’s superannuation includes $50,000 of life insurance cover. Max is worried that if something happened to him, his family would be in financial difficulty.

After speaking to his financial adviser, Max decides to take out a $1 million life insurance policy and $200,000 trauma and disability insurance. When combined with the existing life insurance he has under super, if Max dies unexpectedly Sarah and the children will have $900,000 to live on after all debts are paid. Also, if Max was to suffer from one of the medical conditions specified in his trauma insurance policy or suffer a total and permanent disability, the lump sum he receives would help meet his medical treatment costs, hopefully without the need to dip into the family’s savings or go further into debt.

Max’s adviser also suggests he consider insurance for Sarah. Although she is not working, she makes a valuable contribution through running the household and looking after the children. His adviser points out that if Sarah died unexpectedly, Max would need extra money to arrange for the care of his home and children. As a result, Max decides to take out $500,000 life cover and $400,000 trauma cover for Sarah as well.

Sound advice is the key to success

As you can see from these case studies, an experienced financial adviser can help you identify the areas of greatest risk to your situation. Roe’s Financial Services Pty Ltd offers knowledge, expertise and experience in this area. We’ll take the time to understand your individual circumstances and then recommend appropriate insurance strategies to help protect your family and assets.

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